ALBANY, Ga. — Numbers released by the Hospital Authority of Albany-Dougherty County give a clearer picture of how the body was doing during the fiscal year that ended July 31.
Total revenue contributed from Phoebe Putney Memorial Hospital, which included the $1 in annual lease revenue, was $941,357, compared to $98,938 last year, and there was $33,272 in unrestricted net assets to open FY 2011. Operating expenses for FY 2011 were a little over $4.38 million.
The authority received just under $11.06 million from the Department of Community Health's Indigent Care Trust Fund and paid a little over $3.8 million into that fund, along with $1.37 million to the DCH's upper payment limit fund while receiving $4.67 million from that fund.
"These funds are very important for services," said Linton Harris of Draffin & Tucker of the indigent care funds as he was reviewing the numbers Thursday. "As funds tighten, the pressure will likely increase on hospitals."
After transferring a little over $10.5 million of the DCH funds to Phoebe and paying vendors $772,797, the authority ended up with a $168,560 net increase in cash, which, combined with the cash carried into the fiscal year, left the authority with $206,309 in cash at year's end.
A note included with the financial statement showed that, as of July 31, approximately $218.38 million of revenue anticipation certificates were outstanding in the authority's name.
The audit also showed that if the $195 million purchase of Palmyra Medical Center by the authority is not completed by Dec. 15 — less than a month away — Phoebe Putney Health System is obligated to pay Palmyra's parent company, HCA, a $35 million break-up fee. The audit noted that costs the authority has incurred in response to "federal and state regulatory agency inquiries and actions" in regard to the Palmyra purchase are being reimbursed by Phoebe Health System.
The Palmyra purchase, announced last December, is currently being held up while the 11th U.S. Circuit Court of Appeals decides whether U.S. District Court Judge Louis Sands' ruling earlier this year that the purchase is not subject to Federal Trade Commission review will stand.
After a two-hour closed session, the authority came back and passed a resolution regarding the proposed approval of the lease for Phoebe Dorminey Medical Center. It permits approval of the lease and approves execution by Phoebe Dorminey of the lease.
The resolution hinges, in part, on the fact that it involves a hospital outside of Dougherty County.
"An amendment was made for the (Phoebe) Sumter lease giving the authority the right to pass judgment on a transaction outside of Dougherty County," explained Tommy Chambless, general counsel for Phoebe. "There has to be permission for a lease to be entered into for hospitals outside of Dougherty County."
Updates were also given on the Meredyth Gastrointestinal and Endoscopy Center and Phoebe Sumter Medical Center. The gastrointestinal center is ahead of schedule, with a likely opening in November 2012.
Phoebe Sumter is nearly ready to start accepting patients, with most of the furnishings in place and the construction fences about to come down. The hospital's ribbon-cutting is set for Dec. 10.